Pricing Supplement No Euro D 198 Dated January 16, 1997 Rule 424(b)(3)
(To Prospectus dated April 5, 1996 and File No. 333-01807
Prospectus Supplement dated April 5, 1996)
This Pricing Supplement consists of 3 page(s)
SALOMON INC
Medium-Term Notes, Series D
(Bearer Notes)
Due More Than Nine Months from Date of Issue
Principal Amount or Face Amount: ITL 15,000,000,000 (Italian Lire)
Issue Price: 100.0000000000%
Proceeds to Company on original issuance: ITL 15,000,000,000
Commission or Discount on original issuance: USD 46,600
Salomon Brothers International Limited's capacity on original issuance:
|X| As agent | | As principal
If as principal
| | The Bearer Notes are being offered at varying prices related
to prevailing market prices at the time of resale.
| | The Bearer Notes are being offered at a fixed initial public
offering price of % of Principal Amount or Face Amount.
Original Issue Date: January 17, 1997
Stated Maturity: January 17, 2007
Specified Currency: ITL (ITALIAN LIRE)
(If other than U.S. Dollars)
Authorized Denominations: ITL 100,000,000
(If other than as set forth in the Prospectus Supplement)
Interest Payment Dates: Annually on January 17th, First Coupon Pays
on Jan. 17, 1998 (SEE ATTACHED)
Accrue to Pay: | | Yes |X| No
Indexed Principal Note: | | Yes (See Attached) |X| No
Type of Interest on Note: | | Fixed Rate |X| Floating Rate | | Indexed Rate
(See Attached)
Interest Rate (Fixed Rate Notes):
Initial Interest Rate (Floating Rate Notes): SEE ATTACHED
Base Rate: | | CD Rate | | Commercial Paper Rate | | Federal Funds Rate
| | LIBOR Telerate | | LIBOR Reuters | | Treasury Rate
| | Treasury Rate Constant Maturity |X| Other (See Attached)
Calculation Agent (If other than Citibank): | | Salomon Brothers
|X| Other (See Attached)
Computation of Interest: |X| 30 over 360 | | Actual over Actual
| | Actual over 360 | | Other (See Attached)
(If other than as set forth in the Prospectus Supplement)
Interest Reset Dates: SEE ATTACHED
Rate Determination Dates: SEE ATTACHED
(If other than as set forth in the Prospectus Supplement)
Index Maturity: 10 YEARS
Spread (+/-): -30 BPS
Spread Multiplier: N/A
Change in Spread, Spread Multiplier or Fixed Interest Rate prior to
Stated Maturity: | | Yes (See Attached) |X| No
Maximum Interest Rate: 10.0% (SEE ATTACHED)
Minimum Interest Rate: N/A
Amortizing Note: | | Yes (See Attached) |X| No
Optional Redemption: | | Yes |X| No
Optional Redemption Dates:
Redemption Prices:
Redemption: | | In whole only and not in part | | May be in whole or in part
Optional Repayment: | | Yes |X| No
Optional Repayment Dates:
Optional Repayment Prices:
Discount Note: | | Yes |X| No
Total Amount of OID:
Bond Yield to Call:
Bond Yield to Maturity:
Listed on Luxembourg Stock Exchange: |X| Yes | | No
Common Code: 7214553
ISIN: XS0072145534
Pricing Supplement No. Euro D198 dated January 16, 1997
(to Prospectus Supplement dated April 5, 1996
to Prospectus dated April 5, 1996)
DESCRIPTION OF THE NOTES
General
The description in this Pricing Supplement of the particular terms of
the Bearer Notes offered hereby (the "Notes") supplements, and to the
extent inconsistent therewith replaces, the descriptions of the general
terms and provisions of the Bearer Notes set forth in the accompanying
Prospectus and Prospectus Supplement, to which descriptions reference
is hereby made. The Notes offered hereby are Indexed Rate Notes, as
described under "Description of Bearer Notes" in the accompanying
Prospectus Supplement, to which description reference is hereby made.
Interest
The Notes will bear interest from January 17, 1997 payable
annually in arrears on the 17th day of January (each an "Interest Payment
Date"), commencing Janaury 17, 1998. If an Interest Payment Date with
respect to a Note would otherwise be a day that is not a Business Day,
such Interest Payment Date shall be postponed to the next succeeding
Business Day, provided, however, that if such Business Day is in the next
succeeding calendar month, such Interest Payment Date shall be the
immediately preceding Business Day. Payments will be made in
accordance with the procedures described under "Payments and Paying
Agents" in the accompanying Prospectus Supplement.
The "Initial Interest Period" for each Note will be the period from
and including January 17, 1997 to but excluding January 17, 1998. The
"Interest Period" with respect to each Note is the Initial Interest Period and
each successive period from and including an Interest Reset Date to but
excluding the next succeeding Interest Reset Date. The Interest Reset
Date for the Notes will be the 17th day of January of each year,
commencing January 17, 1997. If an Interest Reset Date for any Note
would otherwise be a day that is not a Business Day, such Interest Reset
Date shall be postponed to the next succeeding Business Day, provided,
however, that if such Business Day is in the next succeeding calendar
month, such Interest Payment Date shall be the immediately preceding
Business Day. The rate of interest that goes into effect on any Interest
Reset Date shall be determined on a date (the "Rate Determination Date")
preceding such Interest Reset Date, as further described below.
The interest rate for the Notes for each Interest Period will be a
floating rate per annum equal to 10 Year ITL CMS (determined as
described below) (the "Base Rate") minus .30% (the "Spread"), provided,
however, that in no event shall the interest rate for any Interest Period
exceed 10.00% per annum (the "Maximum Interest Rate").
10 Year ITL CMS for each Interest Period will be determined by the
Calculation Agent as follows:
On the second Business Day prior to the Interest Reset Date for
such Interest Period (an "10 Year ITL CMS Determination Date") the
Calculation Agent will request the principal London offices of major banks
in the London interbank market selected by such Calculation Agent to
provide such Calculation Agent with their offered quotations for the ten
year Constant Maturity mid-market Italian Lire Swap Rate to prime banks
in the London interbank market at approximately 11:00 a.m., London time,
on such 10 Year ITL CMS Determination Date. The Calculation Agent
shall then take the first five such quotations received and discard the
highest and lowest of such quotations, and "10 Year ITL CMS" for such
Interest Period will be the arithmetic mean of the remaining three
quotations. If fewer than five banks selected as aforesaid by such
Calculation Agent are quoting rates as mentioned in the first sentence of
this paragraph, "10 Year ITL CMS" for such Interest Reset Period will be
the same as for the immediately preceding Interest Reset Period.
Additional Information
The Calculation Agent for the Notes shall be Salomon Brothers
International Limited, a wholly-owned subsidiary of the Company. The
determination of 10 Year ITL CMS by the Calculation Agent shall, in the
absence of manifest error, be conclusive and binding for all purposes.
The Company and/or one or more of its affiliates may enter into a
swap agreement with certain counterparties in connection with its or their
sale of the Notes and may earn additional income as a result of payments
pursuant to such swap or related hedge transactions.
DESCRIPTION OF ITALIAN LIRE
The Specified Currency of the Notes is Italian lire ("ITL") The lira is
the national currency of Italy. Italian bank notes are issued by The Bank
of Italy, which is Italy's central bank and the sole bank of issue. On
January 15, 1997, the noon buying rate for cable transfers in New York
City payable in lire, as reported by the Federal Reserve Bank of New
York, was ITL 1,547.750 = $1.00.
The exchange rate between the lira and the U.S. dollar is, at any
moment, a result of the supply of and the demand for the two currencies,
and changes in such exchange rate result over time from the interaction of
many factors directly or indirectly affecting economic conditions in Italy
and in the United States, including economic and political developments in
other countries. Of particular importance are rates of inflation, interest
rate levels, the balance of payments (both on capital and current account)
and the extent of governmental surpluses or deficits in Italy and in the
United States, all of which are in turn sensitive to the monetary, fiscal and
trade policies pursued by the governments of Italy, the United States and
other countries prominent in international trade and finance. In recent
years, rates of exchange between the U.S. dollar and the Italian lira have
been highly volatile.
